Who pays their fair share of taxes?

[jplinville]

Obama is good at using the term "Fair Share", but what, exactly, is "Fair"? The rich certainly pay more than their share...

CBO: The rich pay an outsized share of taxes - Washington Times

Wealthy Americans earn about 50 percent of all income but pay nearly 70 percent of the federal tax burden, according to the latest analysis Tuesday by the Congressional Budget Office — though the agency said the very richest have seen their share of taxes fall the past few years.
CBO looked at 2007 through 2009 — the latest years data are available, but enough to include the early effects of the last recession — and found the bottom 20 percent of American earners paid just three-tenths of a percent of the total federal tax burden, while the richest 20 percent paid 67.9 percent of taxes.
The top 1 percent, whom President Obama has made a target during the presidential campaign, earned 13.4 percent of all pre-tax income but paid 22.3 percent of taxes in 2009, CBO said. When tax burden is figured in, the top 1 percent took in only 11.5 percent of income.
But the richest 1 percent’s share of the total tax burden did drop 4.4 percentage points from 2007 to 2009 — a figure likely to bolster Mr. Obama’s calls for them to pay more by letting the Bush-era tax cuts expire.
The big losers over the past few years were the rest of the well-off — those in the 60th percent to 99th percent of earnings — who saw their tax burdens go up.
“Specifically, between 2007 and 2009, the share of taxes paid fell for the bottom three income quintiles, was close to flat for the fourth quintile, but rose for the highest quintile,” CBO said. “Within the top quintile, however, the shift was uneven; the share paid by the top percentile fell, and the share paid by the rest of the top quintile rose.”
In terms of actual earnings, the top 1 percent suffered the most in the recession, with their average earnings dropping from $1.9 million to $1.2 million. The lowest 20 percent saw their incomes drop from $23,900 to $23,500 during that time.
CBO included a wide range of measures of income including wages, employer-paid health insurance premiums and capital gains.
CBO said the top 1 percent earned an average of 1.9 million in pre-tax income in 2009, while the top 20 percent as a whole averaged $273,000. The fourth quintile averaged $98,400, the middle quintile averaged $67,600, the second quintile averaged $45,600, and the lowest quintile averaged $23,900 in income.
Mr. Obama has called for households making $250,000 a year or more to pay higher income tax rates, though he has proposed extending the Bush-era rates for those making less.
Republicans have countered that they want a one-year extension of all current rates in order to have breathing space to tackle a broader overhaul of the tax code.
CBO, the non-partisan agency that serves as Congress’ official scorekeeper, said the current tax code is progressive chiefly because of the income tax structure. On average, the lowest 40 percent of earners actually get money back through the income tax code because of refundable tax credits.
Actual changes to the tax code between 2007 and 2009 benefited the lowest earners, CBO said.

[Dudesky]

Originally Posted by jplinville

Obama is good at using the term "Fair Share", but what, exactly, is "Fair"? The rich certainly pay more than their share...

CBO: The rich pay an outsized share of taxes - Washington Times

You'll probably get a call from Obama tonight.

[Benz Fan]

Originally Posted by Dudesky

You'll probably get a call from Obama tonight.

More likely a call from an IRS auditor.

[t walgamuth]

I bet those figures ignore all the other taxes and just look at income taxes. if the soc sec and so forth is counted the poor pay a very high tax rate and perhaps higher than the rich.

[davidmash]

All I know is that Romney paid less as a percentage than I did. That strikes me as a bit unfair. Not sure about the rest of you.

[jplinville]

Originally Posted by davidmash

All I know is that Romney paid less as a percentage than I did. That strikes me as a bit unfair. Not sure about the rest of you.

Romney didn't have income from a salary...it came from investments.

[MS Fowler]

Troll Thread designed to induce PLOM syndrome ( Poor Little Ole Me).
There is no objective basis for what is "fair"--every man decides what is right in his own mind.

[davidmash]

Originally Posted by jplinville

Romney didn't have income from a salary...it came from investments.

Income is income. That is how I define fair. not sure about you.

[Dudesky]

Originally Posted by davidmash

Income is income. That is how I define fair. not sure about you.

He paid tax on that income that created the investments all those years.

Go cry to the guy who wrote the IRS code.

[jplinville]

Originally Posted by davidmash

Income is income. That is how I define fair. not sure about you.

Who's at fault here...Romney for following the rules, or you for not having an income equal to his in amount and design?

Romney didn't write the tax code...

[buffa98]

So what is fair? Should we go to a flat tax for all income regardless of where it's from? Get rid of all deductions? And I mean all. No mortgage interest no head of house hold no earned income credit?

Until that happens for the income tax this debate will continue until the second coming................

The rich (and smart buisness owners) have always had the "means" to hide money to avoid taxes. I will admit it when I had my company I only took $12K as a salary. But I took $50k as a bonus. Why do you ask? No SS on bonuses. Look at what these CEOs get as bonuses and tax that at 13.8%. That is how much is not going into the SS coffers.

There has always been classes in this country, however in the last 25-40 years the middle class has gotten smaller and smaller for various reasons, mainly do to the loss of manufacturing jobs in this country.

Ok off of my soap box, have a good night all.

[jplinville]

Originally Posted by buffa98

So what is fair? Should we go to a flat tax for all income regardless of where it's from? Get rid of all deductions? And I mean all. No mortgage interest no head of house hold no earned income credit?

Until that happens for the income tax this debate will continue until the second coming................

The rich (and smart buisness owners) have always had the "means" to hide money to avoid taxes. I will admit it when I had my company I only took $12K as a salary. But I took $50k as a bonus. Why do you ask? No SS on bonuses. Look at what these CEOs get as bonuses and tax that at 13.8%. That is how much is not going into the SS coffers.

There has always been classes in this country, however in the last 25-40 years the middle class has gotten smaller and smaller for various reasons, mainly do to the loss of manufacturing jobs in this country.

Ok off of my soap box, have a good night all.

Makes you wonder why there are so many in DC that are against the idea of a flat tax...

[Dubyagee]

Progressive tax codes are unfair by nature. Get rid of them or put the tax season right before the elections.

[Kuan]

The rich use a lot more government than meets the eye. If you wanna play you gotta pay.

[davidmash]

Originally Posted by jplinville

Who's at fault here...Romney for following the rules, or you for not having an income equal to his in amount and design?

Romney didn't write the tax code...

I was not aware I placed blame. I was not born with a silver spoon. I know he did not write the code. And you can be dam sure that he and the other 1% are not in any hurry to see the tax code changed.

I see fair as being the same. When his tax rate is the same as mine we can talk about fair, till then..... he and the rest of the 1% can kiss my ass.